Determinant of Cigarettes Consumption on Poor Households in Regency of Situbondo, Indonesia

Abstract:

The first step model was using
Probit analysis that was aimed to determine the probability of the households to
smoke. Meanwhile the two-step model using Ordinary Least Square (OLS) method
was applied especially for cigarette consumption households. The results of this
study indicated income and price of complementary goods (such as sugar and coffee)
were significantly influence to cigarette consumption. On the other hand price was
not a significantly effect on the decision to smoke, but it had significantly effect to
the quantity of cigarettes smoked. Higher cigarette expenditures will reduce spending
on health and education.